Such a consistency modification is required even if

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: of financial statements between periods. Since the auditor's standard report implies that consistency exists, no modification to the report is necessary. Choices "a", "b", and "d" are incorrect. Assuming their effects are material, changes in accounting principle result in the addition of an explanatory paragraph (following the opinion paragraph) in the auditor's report. Such a consistency modification is required even if the previous accounting principle was not GAAP and even if management lacks reasonable justification for the change. (Note: A lack of reasonable justification for the change may also give rise to a report modification based on a departure from GAAP.) 5 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Auditing and Attestation 1 Class Questions 10. CPA-02469 Which of the following phrases would an auditor most likely include in the auditor's report when expressing a qualified opinion because of inadequate disclo...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online